Geneva Meeting: A Step Towards De-escalation?

Negotiations occurred in Geneva, with key figures from both the US and china participating. Although the precise location of the discussions was initially undisclosed, sources indicate that the delegations convened at the Swiss Ambassador to the UN’s headquarters in Cologna for a pre-planned lunch, before resuming talks. While details remain scarce, the Chinese State Press Agency acknowledged the meeting as an meaningful step towards a dispute.

The General Director of the World Trade Organization (WTO) Ngozi Okonjo-Iweala described the Geneva meeting as a “positive and constructive step towards de-escalation” of the business conflict.

Clarifying Positions and Exploring Future Negotiations

According to reports, the primary focus of the Geneva negotiations, which are expected to continue, is to clarify each party’s demands and explore avenues for future discussions. The New York Times suggests that these initial talks are aimed at laying the groundwork for more substantive negotiations down the line.

Trump’s Tariff Proposals and White House Response

Former President trump has publicly suggested a significant tariff on Chinese goods entering the United States, perhaps around 80%. He voiced his opinion on his social network Truth Social, stating China should open its market to the United States – it would be so good for them !!! Closed markets no longer work !!!. Though, White House spokesperson Karoline Leavitta clarified that this figure is not an official proposal but rather a hypothetical number. She emphasized that the US is unlikely to reduce tariffs unless China reciprocates with similar measures.

tariff Reduction Expectations and Current Trade Landscape

Prior to the Geneva talks, Bloomberg reported that US negotiators were considering reducing tariffs to below 60% as early as next week. This potential reduction would be a significant shift from the current landscape, where tariffs on moast Chinese imports have risen to 145% since January. The US administration has accused China of unfair trade practices,including subsidizing key sectors and flooding global markets with inexpensive goods. Additionally, the US is pressing China to take stronger action against the export of fentanyl precursors.

China’s Retaliatory Measures and Trade Statistics

In response to US tariffs, China has implemented its own measures, including restricting exports of rare earth elements and increasing tariffs on US goods, reaching up to 125% on certain products like soy and liquefied natural gas (LNG). Recent trade statistics for April indicate a 20% year-on-year decline in Chinese imports into the US, while overall Chinese exports have increased by 8.1%. These figures highlight the complex and dynamic nature of the trade relationship between the two countries.